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Discrimination and Workers' Expectations

Antonio Filippin

Università degli Studi di Milano; Institute for the Study of Labor (IZA)

July 2003

IZA Discussion Paper No. 823

The paper explores the role of workers' expectations as an original explanation for the puzzling long run persistence of observed discrimination against some minorities in the labor market. A game of incomplete information is presented, showing that ex ante identical groups of workers may be characterized by unequal outcomes in equilibrium due to their different beliefs, even though discriminatory tastes and statistical discrimination by employers have disappeared. Wrong beliefs of being discriminated against are self-confirming in this circumstance, being the ultimate cause of a lower percentage of promotions which supports these wrong beliefs.

Number of Pages in PDF File: 31

Keywords: Discrimination, Workers' Expectations, Self-confirming Beliefs

JEL Classification: J71, J15, J24, D84, C79

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Date posted: August 16, 2003  

Suggested Citation

Filippin, Antonio, Discrimination and Workers' Expectations (July 2003). IZA Discussion Paper No. 823. Available at SSRN: http://ssrn.com/abstract=434580

Contact Information

Antonio Filippin (Contact Author)
Università degli Studi di Milano ( email )
Milan, 20122
Institute for the Study of Labor (IZA)
P.O. Box 7240
Bonn, D-53072
Feedback to SSRN

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